Russia's Defence Ministry plans to shift December pay into January as the budget deficit widens

Russia’s Defence Ministry plans for the first time to move December salary payments into the following January, Bloomberg reported on Monday, citing a draft ministry order. Until now the rules required December pay to be completed before the year ended — a practice that also existed in the Soviet Union.

What the draft says

• Starting with December 2026, monthly salaries for that month would be transferred between 11 and 21 January.
• The order would not apply to service members taking part in the war in Ukraine, who would still receive December pay by 25 December.
• According to Bloomberg, the change would help the government manage cash flow by pushing a large block of spending into the next financial period; December traditionally accounts for a disproportionate share of annual state spending.

The budget backdrop

• Government spending this year is expected to exceed the original plan by about 10%, reaching 48.5 trillion rubles (about $602 billion).
• The full-year deficit is projected to widen to 7.3 trillion rubles, or 3.2% of GDP, up from about 2.2% forecast in September.
• Official plans show military spending reaching a record 17.1 trillion rubles next year and easing only slightly to 16.6 trillion in 2028 and 16.3 trillion in 2029.

The draft has not yet taken effect.